Starting a Bicycle Shop

Wanting to start a bicycle shop and looking for a guide to help you put up one? Our guide can help answer your basic questions about starting this business. It discusses important items like startup costs, earning potentials, pricing, equipment needs, the best advertising method and other useful tips.

The key to a successful bike shop is having everything that a customer needs, including bicycle parts and accessories like helmets, clothing and tools.

The idea is to have a complete – but not necessarily large – inventory. Inventory could cost a lot and so it is wiser to have a complete stock without having them too many.

Startup Cost for a Bicycle Shop

The typical startup cost for a bike shop is $20,000-$90,000 if you are renting a 1,000 sq. ft. of floor space. Additional space would mean additional cost, of course. You would need that amount to pay a deposit to the lessee, gas and electric company; buy office furnishing like display racks and counter (maybe a cash register and alarm); and buy new bikes and your inventory of initial parts and accessories. You must also prepare for occasions general repairs of broken windows, and pay window cleaning.

Dealer prices for bikes start at around $50 and averages $453. Markups could be up to about 30%. According to the National Bicycle Dealers Association, the average bike dealers profit is about $25,000 of $500,000 in annual sales. The averaged realized profit margin on bicycles is around 36%, which is just break even, according to NBDA.

Advertising for a Bicycle Shop

The recommended advertising for a bike shop is the small one, occasional classified ad or small yellow ad but not large expensive displays. The classified ad should be specific, meaning it will show items or services that you are offering and their prices. You might also distribute fliers and set up posters and inexpensive signage. Giveaways like pens, flashlights, business cards and imprinted receipts are also materials in which you can advertise your business. A very visible display would also help in enticing people to visit your shop. But most importantly, you should build your clientele through referrals of your good service, the completeness of your merchandise and your strategic location.

Other Tips for a Bicycle Shop Owner

It would help if you have an experience in the bike business, but not necessary; as a general proposition you should be interested into bikes or bike business to be able to bring it through seasons like winter and summer when people are not inclined to buy and ride bikes. Also, it is important for you to realize that this business involves a durable item that needs replacement rarely. That is why it is important for you to keep your business busy by making sales of bike accessories a large part of your business.


  • jeremy said on July 14, 2009
    why dose it cost so much?
  • jareld said on November 4, 2009
    b/c there are a lot a costs. u have to account for the space you are renting. hydro and water to that place. all the parts you'll have to purchase from dealers for replacement parts on customer's bikes. you'll have to buy new bikes, armor, clothing and other accessories and apparel for display to open up your inventory. you'll have to buy all the proper tools so you dont f*k up the customer's bike when they bring it in to get fixed. you'll need either an accountant or a lawyer or both. you may require an employee. and the list can go on towards that part of the costs. on the other list. you'll have all your own personal costs to deal with also. such as food, rent, bills w.e they may be(cell phone, car insurance, etc.) clothes when needed, the hydro and water an w.e else that you have in your place internet. and again that list can go on as well but only so far. u have to be able to keep your customer's happy and committed, but u also have to be committed to your customers. this all costs money an isn't cheap. answer your question???
  • Brandon said on January 17, 2010
    Dartmouth, Nova Scotia, Canada. i'm starting up a bike shop, well i am in the business planing stage and i could use some good pointers on how to fund my bike shop and overall expenses for starting a bike shop? could you give me a hand
  • t meggers said on July 8, 2010
    can you detail me on opening a bicycle shop in Cedar Rapids Iowa 52403
  • sandy said on May 21, 2011
    i want to start a motorbike dealership in mumbai city ,maharashtra state , india., What should i take care before invest money I am a motorbike mechanic. I don't have any experienced in selling or dealing in bike
  • AMIT DAS said on September 4, 2011
    i want to start a motorbike dealership in kolkata , kalyani city ,west bengal state , india.I don't have any experienced in selling or dealing in bike..plz plz help me..
  • Sanket wadekar said on March 25, 2012
    Hi i want to start a sports bicycle store in pune location .i dnt have any experience in the same but one thing which i have is a keen interest in it. so can u plz guide me with the entire process for having a branded bicycle dealership in pune along with the names of some branded bicycle manufacturing companies. it would be great if u can also guide me with the initial investment and handling of the inventories. Thank you.
  • john said on September 20, 2012
    I would like to open up a bicycle shop in el paso texas. any pointers would be great. thank you
  • AMIE said on September 25, 2012
  • pramod said on November 6, 2012
    small security agency in city AGRA (UP). I would like to open up a bicycle shop in AGRA
  • Didier Tulomba said on January 29, 2013
    Hi, I am planning to open a bicycle shop in Luanda Angola (where basically everything has to be imported), can you advise?
  • Jacob Nainan said on March 18, 2013
    Hi there, I am based in Mumbai, India and I am interested in starting an exclusive on line store for bicycle accessories for which I have approached many cycle companies asking them if I could list their products and also approached some companies in china but I am awaiting their replies. I am informed that the Indian customs charge 20% duty on cycle accessories so what is the best way to get the accessories in India, also guide me on how to set up this business.
  • Mike Fink said on November 29, 2013
    I started a bicycle shop, first I started collection of tools and small parts as I work for someone else. I learn everything, then can canned for my idea. I then went out and got a truck, bought few other things, got few documents, business checking. I open up accounts with a few companies to buy stuff from. I started at a farmers market in Quincy, Ma. I did mobile bicycles repairs out my truck part time for two years. I got a small amount to open a shop. At that point I had all the tools needed. I got in for $2,000. that retail space was short as invading rich redevelopers are eyeballing the land. I moved to a better space with a small loan from a friend. $3,000. to get in.. At that point I have a few new bikes, used bikes, parts. Not everything, but it's a small start. I could use a loan, but it's very hard, even to refi my own truck. Most companies offer term credit to help stock your shop. It's a gamble on if people buy.. Take a risk, why not, I use to live on the streets 10 years ago, can't get any worse..
  • Abdurrahman Fusayil said on February 15, 2014
    I am interested to start my first business venture by starting with bikes. I appreciate any advice that maybe of help to start this kind of business. My location will in Saudi Arabia in a city called Abha. Need to know the cost and to know how?. Thanks
  • Carlo Carino said on March 4, 2014
    Hello. I'm planning to put up a cycle shop here in Philippines. I would like to know more on how I can do this right way. Any ideas or advise is highly appreciated.
  • dc said on March 29, 2014
    HI @Carlo Carino: I had plans to set up a bike shop in the Philippines, too. I made connections among other bike shop owners and imported a small inventory with tools. For location rentals, I have looked at locations in Makati, Alabang, and also farther south toward Santa Rosa. However, I am now planning to leave the country. I may be able to help if you need any tools or inventory or advice. Contact me at O9175O16O61.
  • kezar tinwalla said on October 20, 2014
    I want to start a new two wheelers showroom of all leading brand in pune, maharashtra, INDIA. Please help and guide me.
  • jkamati said on October 28, 2014
    I am sixty years old. want a open a bicycle shop in old Faridabad market. kindly suggest a budget plan with future expansion.
  • Ravi m h said on December 24, 2015
    Hi, i want to start a sport bicycle store in pune , maharashtra, india. can you tell me what i need to do this at my local place to start the business.
  • praveen M said on April 3, 2017
    dears, I would like to open a bicycle shop at a better place in Kerala. I don't have any idea for the further proceedings. kindly give some advises & ideas about expenses like rent, furnishing, rooms sq ft, respectively. also, from where we can purchase bicycles and accessories very cheaply.


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